Lawmakers move to halt US data center boom

U.S. state and federal lawmakers are working to halt the rampant data center buildout 

Responding to the mounting opposition to the rapid data center buildout in the U.S., Senator Bernie Sanders announced the “Artificial Intelligence Data Center Moratorium Act” that, if passed, would put a hold on the construction of any new data centers in the U.S. until “legislation is enacted that safeguards the public from the dangers of artificial intelligence.” Congressional Representative Alexandria Ocasio-Cortez plans to introduce a companion bill in the House, The Guardian reported. 

The proposed federal legislation to pause the rampant data center buildout comes as momentum against the data center buildout has accelerated and as similar bills are being introduced at the state level, with at least 12 in-session states considering moratorium bills in addition to executive actions and local measures being considered at the county level.

Private equity firms like BlackRock and Blackstone have invested nearly $200 billion in data center–related deals since 2022, driving a wave of acquisitions across gas-fired power plants, fossil fuel assets, and even acquiring stakes in electric utilities and critical infrastructure to fuel the digital sector boom—artificial intelligence (AI) and data centers—despite uncertain demand forecasts and mounting community opposition. 

As of mid-2025, Blackstone managed $85 billion worth of data centers globally and continues to invest in the sector for the long term. Notably, Blackstone acquired QTS Realty Trust in 2021 in part through its Blackstone Infrastructure Partners platform. QTS is currently the largest data center operator in the world. With data centers contributing to an all-time high electricity consumption in the US in 2024, Blackstone has been very clear about its intention to invest across the AI supply chain, stating: “We have built the largest and fastest growing data center business in the world in partnership with incredibly talented teams at our portfolio companies. For years now, we have been planting the seeds for future growth and are positioning ourselves for continued leadership over the long term.”

Along with the severe environmental impacts of data centers, a recent analysis found that electricity costs in data center–dense regions have risen 267% in just five years. As firms like BlackRock and Blackstone double down on fossil fuel–powered infrastructure to meet AI’s projected demand, consumers and investors could be left shouldering the financial and environmental fallout.

Momentum against the data center bailout has been increasing significantly. In 2025, 48 data center projects were blocked or delayed amid local opposition, affecting $ 156 billion in investment capital. In addition to increased local opposition, in December 2025, a coalition of over 230  environmental groups led by Food & Water Watch sent a letter to members of Congress calling on them to propose a national moratorium on the approval and construction of new data centers.